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TRUE VALUE METRICS
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THESE ARE TODAY'S DOMINANT METRICS
SUCH METRICS ARE NOT FIT-FOR-PURPOSE
GDP GROWTH CORPORATE PROFITS STOCK PRICES
  • BETTER MANAGEMENT METRICS ARE NEEDED.
    • GDP growth is an inadequate and clumsy measure. GDP always assumes that more is better!
    • Profit should not be the only corporate goal; Corporate performance is about profits, AND social impact AND environmental impact;
    • Investors should be accountable for ALL impacts of the companies they own.
    • A measure should have constant value. Money does not!
  • TRUEVALUEMETRICS (TVM) IS A SOLUTION
    • ALL means PEOPLE, PLANET and PROFIT
      ... the TRIPLE BOTTOM LINE;
    • Accounting for the STATE of ALL the CAPITALS;
    • Accounting for the PROGRESS of ALL the CAPITALS;
    • Accounting for ALL the ACTIVITIES ... all the PROCESSES;
    • Accounting for ALL the IMPACTS of ALL the ACTIVITIES ;
    • Accountability for all the ACTORS ... PEOPLE and ORGANIZATIONS; and
    • PROGRESS and PERFORMANCE for ALL the PERSPECTIVES.
    • Metrics that are coherent, comprehensive, and relevant.
  • TVM IS WELL SUITED FOR THE COMPLEX 21ST CENTURY
BETTER METRICS
MUST TAKE INTO ACCOUNT ALL THE CAPITALS
NOT JUST FINANCIAL CAPITAL AND MONEY WEALTH
SOCIAL
CAPITAL

SOCIO 		NATURAL
CAPITAL

ENVIRO 		ECONOMIC
CAPITAL

ECONOMIC
Social and economic progress has been achieved over the past 200+ years by exploiting natural capital. All value originates with nature and everything depends on nature. This is unsustainable, but technological innovation can (must) be used to change things for the better.
ACTIVITIES have IMPACT on ALL the CAPITALS
SOCIAL IMPACT ENVIRONMENTAL IMPACT ECONOMIC IMPACT
There is a cost of living to support quality of life
There are contributions that people make
There is net benefit AND change to capitals (hopefully positive) 		There are storms, earthquakes and natural disasters
Ecosystem services are a source of all value
There is net benefit AND change to capitals (mostly negative) 		There are operating costs for all oconomic activities
There are benefits from economic activity
There is net benefit AND change to capitals (hopefully positive)
CONSUMPTION DRIVES THE MODERN ECONOMY
WITH IMPACTS ON SOCIETY, ENVIRONMENT AND THE ECONOMY!
CONSUMPTION IMPACTS OF PRODUCTION
Quality of Life
SOCIO 		Pollution (BAD)
ENVIRO 		Profit (GOOD)
ECONOMIC
Consumption is driving the modern economy. It looks like success as long as the depletion of natural resourcs and the degradation of the environment is ignored.There is strong correlation between better quality of life and more consumption in poor economies, but less so in mature rich economies. Rich economies are increasingly associated with catastrophic pollution, waste, inequality and inefficiency.
ACTORS ARE PEOPLE IN MANY DIFFERENT ROLES.
MANAGEMENT METRICS NEEDED FOR EVERYONE
ALL MUST BE HELD ACCOUNTABLE INCLUDING THE RICH AND POWERFUL!
AS INDIVIDUALS

Live life ... work & family 		IN ORGANIZATIONS

Do the work ... make the decisions 		AS INVESTORS

Allocate financial resources
Prevailing metrics and financialization have had mixed results ... very good economic outcomes for an elite few, but extremely disappointing for everyone else. The concentration of wealth and power is fueling global discontent in very destabilizing ways, including social discontent and anger at the establishment elites and increasingly out-of-control climate instability.
NATURE IS ALSO AN ACTOR
NATURE IS THE SOURCE OF ALL VALUE
AND PREDATES PEOPLE BY MANY BILLIONS OF YEARS
WATER, AIR, ETC. MINERALS VEGETATION ANIMALS
The natural world is complicated and amazing.
It is thought-provoking to look up into the sky and to apprciate how large the universe.
And then there are all the amazing things in the natural world on earth that exist and are available for people to use,
How all these things got to exist is difficult to comprehend!
FOR EXAMPLE: NATURE MAKES A FISHERY SUSTAINABLE
JUVENILE NURSERY INDUSTRIAL FISHERY SEAFOOD MARKET
  • Natural Capital is foundation for this fish and food flow
  • Economic Activity captures fish, employs fisherfolk and earns profit.
  • Social Capital benefits from employment and food
CONSIDER ALL THE PERSPECTIVES
ECONOMIC ACTIVITIES (PROCESS) PRODUCES PROFIT ... LOT'S OF IT
BUT ALSO HAS IMPACT ON PEOPLE, PLACE & PRODUCTS
PROCESS
Engineering 		PROFIT

Economic goal 		PEOPLE

Families 		PLACE

Where people live 		PRODUCTS

Quality of Life
There is valueadd when there is a positive balance from every perspective. Process is constrained by technology and engineering. Optimizing for profit alone is not enough, people should also progress. And the progress of people is enhanced by the characteristics of the place. Products impact everything. The production of products is a factor in the generation of profits. The consumption of products is a factor in quality of life. Optimizing for all of this is not a simple exercise ... but optimizing simply for profit is not enough.
IMPERATIVE FOR RADICAL ACCOUNTABILITY
EVERYTHING FOCUSED ON PROFIT PERFORMANCE MAKES NO SENSE
We talk about profit and money and wealth But not about low wages, poverty and deprivation And how the system is rigged in favor of the wealthy And all sorts of abysmal hidden corporate behavior
The only group that are protected systemically are investors ... everyone else may be lied to with impunity. In the USA it is called the First Amendment. But there is nothing to stop society from doing RADICAL ACCOUNTABILITY so that misfeasance in every aspect of society is exposed.
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